Gents Readymade Garments
| Product Code | 264104005 |
| Quality and Standards | Garment Quality Guide— IS12675 Readymade Garment Packaging for Export IS 4039 Garments Guide for Positioning of Labels IS 10194 |
| Production Capacity | Qty. : 90,000 Pcs. Shirts, 90,000 Pcs. Trousers |
| Uploaded on | August 2007 |
Introduction
Readymade garment industry has occupied a unique place in the industrial scenario of our country by generating substantial export earnings and creating lot of employment. Its contribution to industrial production, employment and export earnings is very significant. This industry provides one of the basic necessities of life. The employment provided by it is a source of livelihood for millions of people. It also provides maximum employment with minimum capital investment. Since this industry is highly labour-intensive, it is ideally suited to Indian condition. This project report is prepared for the manufacture of gents shirts, gents trousers as they find wide acceptance in local and international markets. Such establishments can be easily set up by any person having the knowledge of cutting and stitching operations.
Market Potential
Readymade garments are the choice of urban people. It is also gaining wider acceptance in semiurban and rural areas. The huge charges made by tailors and delay in delivery have made people to switch over to readymade garments. In domestic market and export market, it has made spectacular progress in the last decade. This industry is becoming very vibrant and lot of foreign investment pouring in this industry because of low risk and high earning nature of this industry. As these products are fashion oriented, entrepreneurs should always keep in mind the changing fashion styles. Considering its advantageous position, it is assumed that there will be no constraint in marketing of gents readymade garments.
Basis and Presumptions
- This project is based on single shift basis and 300 working days in a year.
- Since this industry is labourintensive, the working efficiency is considered at 75%.
- Costs of machinery and equipment/ material indicated refer to a particular make and approximately to those prevailing at the time of preparation of this project.
- Installation and electrification cost is taken @ 10% of cost of machinery and equipment.
- Non-refundable deposits, project report cost, trial production, security deposits with Electricity Board are taken under preoperative expenses.
- Depreciation has been considered:
(a) On Building @ 5%
(b) On plant and machinery @ 10%
(c) On office furniture and fixtures @ 15%
(d) On other fixed assets @ 15%. - Interest on capital investment has been taken @ 14% per annum.
- Minimum 25% of total investment is required as margin money.
Implementation Schedule
Implementation period in months for executing this project in stage-wise is given below :
| Selection of site/working shed | 1 month |
| Formation of company (ownership/partnership) | 1 month |
| Preparation of feasibility report | 1 month |
| Registration with commissioner of Industries/DIC | 1 month |
| Arrangement of finance (Term loan and working capital) | 3 months |
| Procurement of machinery and equipment | 1 month |
| Plant erection and electrification | 2 weeks |
| Arrangement of raw material including packaging material etc. | 1 month |
| Recruitment of manpower | 1 month |
| Selection of market channel | 1 month |
| Miscellaneous works like power/water connection etc. | 2 months |
Note: Considering that some of the above activities may be overlapping, the project implementation will take a total period of six months approximately for starting the production.
Technical Aspects
Process of Manufacture
The process involves the following steps: Procurement of Fabric : Dyed/ bleached/printed cotton/synthetic fabrics as per demand are to be procured from the open market. The fabric will be inspected by laying on the inspection table against light before cutting so that unevenness in colour/ shade or any other fault, if any visible in the fabric are eliminated.
Cutting and Stitching : The inspected fabric is placed on the cutting table in layers and then the different parts of the respective garments are demarked by a chalk as per different sizes. Cutting is carried out by the cutting machine. Stitching is carried out for individual portion of the garments by skilled workers with the help of overlock, lock stitch machines etc.
Washing, Checking, Pressing and Packing : All garments are charged into washing machine containing mild detergent and washed for 4 hours in order to remove dirt and stains acquired during the manufacturing process. After washing, the garments are hydroextracted to remove excess water and after this, these garments are dried in tumbler dryer. Final checking is done before pressing and packing on the checking table so that any fault in the piece may be removed and protruding threads eliminated. The individual pieces are pressed by steam presses to remove any wrinkle marks and packed in the carton boxes.
Quality Control and Standards
The quality of garments mainly depends on quality of fabric used. Therefore, care must be taken while purchasing fabrics to ensure good colour fastness properties, uniformity in shade etc. Generally garments are made as per customer's specification in respect of size, design and fashion.
Production Capacity (per annum)
Product |
Quantity (pcs.) |
| Gents Shirts | 90,000 |
| Gents Trousers | 90,000 |
Motive Power
Total 55.5 HP is required to run this unit at installed capacity.
Pollution Control
The process of manufacture does not generate pollution. However, entrepreneurs are to contact State Pollution Control Board for necessary guidance.
Energy conservation
Maximum care should be taken while selecting the machinery and other electrical equipments so as to ensure minimum power consumption.
Financial Aspects
Financial Aspects
Land and Building (Rented) (per month) |
|
| Land 800sq.mt. @ Rs. 1500p.s.m. Amounting Rs.1200000 | |
| Building Area | |
| Factory shed | 250 sq. mt. |
| Store (Raw material) | 50 sq. mt. |
| Store (Finished goods) | 50 sq. mt. |
| Office etc. | 25 sq. mt. |
| Total Covered Area | 375 sq. mt. |
| Total Construction Cost @ Rs. 3000/sq.mt. | 1125000 |
| Total Investment in land and Building | 2325000 |
Machinery and Equipments
Description |
No. |
Rate (In Rs.) |
Amount (Rs.) |
| Fabric inspection machine | 1 | 200000 | 200000 |
| 8" Power driven cloth cutting machine | 1 | 90000 | 90000 |
| Single needle lock stitch machine with motor | 50 | 20000 | 20000 |
| 2 Needle overlock safety stitching machine with edge trimmer | 1 | 50000 | 50000 |
| Double Needle lock stitch machine | 2 | 75000 | 150000 |
| Double Needle feed of the arm machine | 1 | 120000 | 120000 |
| Button holing machine | 1 | 160000 | 160000 |
| Button stitching machine | 1 | 75000 | 75000 |
| Hot fusing press | 1 | 80000 | 80000 |
| Garment washing machine 25 kg. capacity | 1 | 160000 | 160000 |
| Hydroextractor 25 kg. capacity | 1 | 90000 | 90000 |
| Tumbler dryer 25 kg.capacity | 1 | 160000 | 160000 |
| Flat bed steam iron press with vacuum table | 4 | 85000 | 85000 |
| Zig zag embroidery machine | 1 | 45000 | 45000 |
| Generator set 30KVA | 1 | 200000 | 200000 |
| Washing room trolleys | 4 | 12000 | 48000 |
| Testing equipments (ends/pick checker, electronic balance, laundrometer etc.) | LS | 65000 | 65000 |
| Total | 3033000 | ||
Other Fixed Assets |
(Rs.) |
| Erection and installation | 300000 |
| Office furniture | 70000 |
| Pre-operative expenses | 30000 |
| Total | 400000 |
| Total Fixed Capital | 5758000 |
Working Capital (per month)
Staff and labour Wages
Designation |
Nos. |
Rate (In Rs.) |
Amount (Rs.) |
| Marketing Manager | 1 | 16000 | 16000 |
| Sales Representative | 2 | 8000 | 16000 |
| Accounts Officer | 1 | 6500 | 6500 |
| Store-keeper | 1 | 5000 | 5000 |
| Clerk/Typist | 2 | 4000 | 8000 |
| Electrician | 1 | 5000 | 5000 |
| Peons/Watchman | 2 | 3000 | 6000 |
| Total | 62500 | ||
| Production Staff | |||
| Production Manager | 1 | 16000 | 16000 |
| Supervisors | 2 | 8000 | 16000 |
| Cutting Master | 1 | 10000 | 10000 |
| Skilled Workers | 55 | 4800 | 264000 |
| Pressman | 4 | 4500 | 18000 |
| Unskilled workers | 6 | 3250 | 19500 |
| Lab. Attendant | 1 | 5500 | 5500 |
| Total | 5 | 3200 | 411500 |
| Perquisites @20% | 82300 | ||
| G.Total | 493800 | ||
Raw Material (per month)
Description |
Unit |
Qty. |
Rate/ Unit(Rs.) |
Amount (Rs.) |
| Cotton fabric shirts | mtrs | 19000 | 90 | 1710000 |
| Blended fabric for trousers | mtrs. | 12000 | 160 | 1920000 |
| Trims and embellishments | Nos | 15000 | 16 | 240000 |
| Sewing thread | mtrs | 15000 | 4 | 60000 |
| Washing detergents | LS | 3900 | ||
| Packing material | Nos | 15000 | 4 | 60000 |
| Total | 3993900 | |||
Utilities (per month) |
(Rs.) |
| Electricity | 32000 |
| Water Charges | 2200 |
| Fuel for generator | 10000 |
| Total | 44200 |
Other Contingent Expenses (per month) |
(Rs.) |
| Advertisement and publicity | 10000 |
| Postage/Stationery | 2000 |
| Repair and maintenance | 13000 |
| Transport/travelling charges | 5000 |
| Insurance | 1000 |
| Telephone | 3000 |
| Miscellaneous expenses | 4000 |
| Total | 38000 |
| Total Recurring Expenses (per month) | 4569900 |
| Total Working Capital for 2 months | 9139800 |
Total Capital Investment
| Land and building | 2325000 |
| Machinery and equipment | 3433000 |
| Working capital for 2 months | 9139800 |
| Total | 14897800 |
Machinery Utilisation
Capacity utilisation is considered as 75% of installed capacity.
Financial Analysis
Cost of Production (per year) |
(Rs.) |
| Recurring expenses | 54838800 |
| Depreciation on building @ 5% | 116250 |
| Depreciation on machinery @ 10% | 303300 |
| Depreciation on office furniture and other fixed assets @ 20% | 80000 |
| Interest on total investment @ 14% | 2085692 |
| Total | 57424042 |
Turnover (per year) (Sales)
Pcs. |
Rate/Pc. |
Amount (Rs.) |
|
| Gents shirts | 90000 | 290 | 26100000 |
| Gents trousers | 90000 | 390 | 35100000 |
| Total | 61200000 | ||
| Net Profit (per year) | 3775958 | ||
| Net Profit Ratio (Net profit/Turnover per year) | 6.17% | ||
| Rate of Return on Investment (Net Profit/Total Capital Investment) | 25.35% | ||
Break-even Point
Fixed Cost |
(Rs.) |
| Depreciation | 499550 |
| Interest on capital investment | 2085692 |
| 40% of wages of staff and labour | 2370240 |
| 40% of other expenses | 177600 |
| Insurance | 12000 |
| Total | 5145082 |
| B.E.P. | Fixed cost × 100 ------------------------- Fixed cost + Profit = 57.67% |
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
